If you’ve ever been gifted jewelry, drones or other valuable pieces, it’s worth considering how to protect them. Should you insure expensive gifts?
It can be easy to overlook the importance of insuring them, said Tim Bemis, insurance services regional manager at Dupaco Insurance Services.
“Because they’re gifts, and you don’t have any money in them yourself, the value can sneak up on you sometimes and surprise you,” he said.
Pricy gifts that can affect your insurance
These more expensive gifts are worth considering protecting with insurance:
Homeowner’s and renters insurance policies limit the amount of property coverage for these items, Bemis said.
But most Dupaco Insurance Services carriers offer the option to add a scheduled property rider to your policy that provides all-risk coverage for listed items—such as jewelry, fine art and firearms—up to their appraised value. The endorsement includes mysterious disappearance.
What you should know about drones
If you buy or receive a drone, how you use it determines whether you need additional insurance.
If it will be used for commercial purposes, like wedding photography, neither a homeowner’s policy nor a commercial policy will respond, Bemis said.
Instead, you need a commercial drone policy to protect your gift.
Is it for personal use? Your homeowner’s policy will cover damage to the drone or liability up to your policy limits in the event it crashes into someone’s property.
“But if you are renting and don’t have renters insurance, you don’t have that liability coverage,” Bemis said.